Water and Wastewater rate study

1. Water & Wastewater Rate Study
Request for Proposal
Presented By: Robert Galindo
Finance Director
Item # 4
City Council Meeting
February 12, 2018

2. 2
Background for Water and
Wastewater Rate Study
• Last rate study was in 2007
• Rates must be able to pay for operations
and capital requirements and existing debt
• Water rates have not changed since 2007

3. 3
Background
Request for Proposal (RFP) for a rate study for
water and wastewater rates:
• Advertised November 8, 2017
• Due Date for proposals - December 8, 2017
• City received six proposals by due date
• One proposal came in after due date, not
considered

4. 4
Water/Wastewater RFP
Six proposals received by due date:
• Willdan Financial Services
• HDR Engineering
• NewGen Strategies & Solutions
• GDS Associates
• Arcadis
• Burns & McDonnell Engineering

5. 5
Key Criteria for Evaluation of Proposals
• Experience of firm conducting rate studies
• Experience with cities in Texas
• Qualifications of team performing rate study
• Team members and hours assigned to rate study
• Timeline
• Met all requirements of the proposal
• Cost

6. 6
Selection of Willdan Financial Services
 Performed over 300 rate studies
 Extensive experience in Texas
 Timeline is approximately 90 days
 Most hours dedicated to the rate study
compared to other proposals
 Cost was the most competitive

7. 7
Rate Study Deliverables
• Analysis of current utility financials and existing rates
• Financial forecast of utility for 10 years
• Forecast of water and wastewater rates for 10 years
• Financial analysis will include capital requirements
• Develop a model in excel format for the city
• Provide a benchmark of city utility rates compared to
SAWS and other cities

8. 8
Summary of Ratings
 Willdan Financial Services 95
 HDR Engineering 87
 NewGen Strategies & Solutions 78
 GDS Associates 76
 Arcadis 70
 Burns & McDonnell Engineering 69

9. 9
Policy Analysis
• Staff has followed all of the
procedures required for the solicitation
of professional services under Texas
law.

10. 10
Financial Impact
• The contract cost is a not to exceed
$25,000
• Funds are available in current budget

11. Consideration of a Resolution authorizing
a contract to Willdan Financial Services
to perform a rate study for water and
wastewater rates and authorizing the City
Manager to negotiate and execute a
contract for such services.
1
1
Proposal